US Dollar challenges lows around 98.80

FXStreet (Edinburgh) - The US Dollar Index, which tracks the greenback vs. its main rivals, has lost the 99.00 handle and is now testing the 98.85/80 band.

US Dollar in 3-day lows

The greenback is retreating for the second session in a row after being rejected in recent peaks around the 99.70 area after a promising start of the new year. The pick up in the risk-off trade following the turmoil in Chinese markets plus the collapse of crude oil prices have prompted investors to seek another safe haven currencies, like the yen and the franc.

Data wise in the US docket, Initial Claims have matched estimates during the week ended on January 1, coming in at 277K vs. 275K forecasted.

US Dollar significant levels

As of writing the US Dollar Index is losing 0.38% at 98.90 and a breach of 98.01 (38.2% Fibo of 93.82-100.60) would open the door to 97.19 (100-day sma) and finally 95.88 (5-month uptrend). On the flip side, the next resistance aligns at 99.73 (high Jan.6) ahead of 100.00 (psychological level) and then 100.60 (2015 high Dec.3).
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